NTIA Backs Burnham for Prime Minister to Cut VAT on Nightlife, Hospitality and Events

Industry Calls for Leadership Change as Night-Time Economy Warns It Cannot Survive Three More Years of Economic Uncertainty under the current leadership regime.

The Night Time Industries Association (NTIA) has today backed Andy Burnham’s call for a reduction in VAT across hospitality and the wider night-time economy, arguing that the sector cannot afford three more years of economic uncertainty, rising taxation and mounting financial pressures under the current political leadership.

With businesses already struggling under the weight of VAT, National Insurance Contributions and business rates, the association warns that further taxation or continued economic instability would have devastating consequences for one of Britain’s most important economic, cultural and employment sectors.

The intervention follows growing calls for a reduced VAT rate for hospitality and night-time economy businesses. Nightclubs, bars, pubs, restaurants, live music venues, festivals, event organisers, cultural institutions and late-night entertainment businesses are all facing unprecedented financial pressure as costs continue to rise and consumer spending remains under strain.

The NTIA believes the UK’s night-time economy has reached a tipping point. Businesses across the sector are battling rising operating costs, increased National Insurance Contributions, punitive business rates, escalating energy costs and one of the highest VAT burdens in Europe. The result has been a wave of venue closures, cancelled events, reduced investment and growing uncertainty about the future of Britain’s cultural, social and economic infrastructure.

The NTIA stressed that, while it remains politically independent, its responsibility is to champion policies that support the sector’s long-term survival and growth. This includes focusing its engagement on those political figures best positioned to effect meaningful change in the near term, with Andy Burnham currently representing the most significant opportunity to advance the sector’s priorities.

Michael Kill, Chief Executive of the NTIA, said: “We are apolitical as an organisation, but we are not neutral when it comes to the survival of our industry.”

“The hospitality and night-time economy sectors are under more pressure than at any point in recent memory. Businesses are being crippled by taxation at a time when margins have been eroded, consumer confidence remains fragile and operating costs continue to rise.”

“For years, we have called for meaningful action on VAT, National Insurance Contributions and business rates. Yet despite overwhelming evidence that the current system is failing businesses, very few political leaders have been willing to engage with the reality facing our sector.”

“At the Night Time Economy Summit earlier this year, speaking alongside former Deputy Prime Minister Angela Rayner before an audience of industry leaders and national media, Andy Burnham publicly acknowledged that the current taxation model is failing businesses and made clear that VAT must be part of the solution. At a time when operators are facing mounting costs, venue closures and declining confidence, he has emerged as the leading political voice for hospitality and the night-time economy.”

“When businesses are closing every week, when operators are struggling to remain viable and when investment is leaving the sector, we have a responsibility to support those who are prepared to engage with solutions.”

“The reality is that our industry cannot survive three more years of the current approach. Businesses are closing, investment is drying up and confidence has collapsed. What many operators now see is a stark choice: three more years of economic uncertainty, rising costs and additional pressure on already struggling businesses, or a change in leadership and direction that finally recognises the value of hospitality, nightlife, festivals, events and culture to the UK economy.”

“What worries us most is that, while businesses are already struggling under unprecedented pressure, there are now discussions about increasing taxes even further. For many operators, there is simply nothing left to give.”

“Hospitality and nightlife should be viewed as economic drivers, major employers and critical contributors to the UK’s cultural identity. Instead, they continue to be treated as a convenient source of revenue.”

“If government is serious about growth, jobs and thriving town and city centres, it must recognise that the current model is unsustainable. We need a new direction, a new approach and a new relationship between government and the businesses that power the UK’s night-time economy.”

“We remain politically independent, but we also have a responsibility to be honest. Right now, Andy Burnham is the only major political figure openly engaging with our sector’s calls for action on VAT, business rates and National Insurance and the only one we believe has a credible opportunity to influence change in the immediate future.”. With three years still remaining in this Parliament, many businesses believe they simply cannot afford more of the same.”

The NTIA believes that a reduction in VAT would deliver immediate benefits across the wider night-time economy, helping to protect jobs, stimulate consumer spending, encourage investment and safeguard the future of venues, festivals, events, hospitality businesses and cultural spaces that are central to Britain’s economic and social fabric.

With three years remaining in the current Parliament, the association warns that businesses cannot afford further economic uncertainty. Operators across nightlife, hospitality, festivals, live entertainment and events are already facing unprecedented challenges, and many fear that additional taxation, declining consumer confidence and a lack of meaningful intervention could lead to irreversible damage across the sector.

For the NTIA, the message is clear Kill added: “The sector has waited long enough. Businesses need action, they need relief from unsustainable taxation, and they need leaders prepared to listen. With three years still remaining in this Parliament, the industry cannot afford continued economic uncertainty or further pressure on already struggling businesses.

“Andy Burnham. is not only the most prominent political figure currently engaging with the sector’s calls for action on VAT, business rates and National Insurance, but is also widely regarded as a potential future national leader with the ability to shape, influence and ultimately deliver meaningful change in government policy. For an industry desperately seeking a new direction, he represents one of the few credible voices prepared to challenge the current approach and place hospitality, nightlife, events and culture at the heart of the economic agenda.”